Stitch Fix (SFIX) Stock Forecast & Price Target

Stitch Fix Inc. is projecting sales of $1.28 billion to $1.33 billion for FY26, indicating a year-over-year increase of 1% to 5%, with an expected revenue boost this quarter estimated between $333 million and $338 million, representing a growth of 4.4% to 6.0%. The company reported a 7.3% increase in total revenue for the first quarter, amounting to $342 million, which exceeded market expectations. Additionally, the average order value (AOV) increased by 7.6% year-over-year, driven by a refreshed merchandise mix, while the women’s segment saw significant growth, with certain categories rising by 19% year-over-year.

Stitch Fix Inc. has reported a decline in active clients, decreasing by 5.2% year-over-year to 2.307 million, which has contributed to concerns about sustained revenue growth. The company's gross margin contracted 180 basis points to 43.6%, falling short of expectations and indicating pressure on profitability amid rising costs. Additionally, the adjusted EBITDA margin is forecasted to further decrease to a range of 2.3%-3.4%, reflecting a significant decline from the previous year's margin of 3.9%, thereby signaling deteriorating financial health and operational challenges.